Overview :
As expected, the EUR/USD pair is still moving in a strong bullish channel (upwards) from the level of 1.2209. Yesterday, the pair rose from he level of 1.2209 (Pivot, support, 61.8% of Fibonacci retracement, last bearish wave) to the top point around 1.2273.
Today, the first resistance level is seen at 1.2273 followed by 1.2300 and 1.2335, while daily support 1 is seen at 1.2209. But the pair has rebounded from the top of 1.2273 to close at 1.2250.
Furthermore, the price has set above the strong support at the level of 1.2209, which coincides with the 61.8% Fibonacci retracement level.
This support has been rejected several times confirming the veracity of an uptrend. Additionally, the RSI starts signaling an upward trend.
According to the previous events, the EUR/USD pair is still moving between the levels of 1.2209 and 1.2335; for that we expect a range of 126 pips (1.2335 - 1.2209).
If the EUR/USD pair fails to break through the resistance level of 1.2209, the market will rise further to 1.2273 again. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs.
The pair is expected to climb higher towards at least 1.2300 with a view to test the first daily resistance.
Consequently, the market is likely to show signs of a bullish trend. So, it will be good to buy above the level of 1.2273 with a target at 0.6551 1.2300 and further to 1.2335.
On the contrary, if a breakout takes place at the resistance level of 1.2209 (pivot), then this scenario may become invalidated.
Conclusion :
Accordingly, the EUR/USD pair is showing signs of strength following a breakout of a high at 1.2209. Hence, buy above the level of 1.2209 with the first target at 1.2273 in order to test the daily resistance 1 and move further to 1.2300. Also, the level of 1.2335 is a good place to take profit because it will form a new bearish wave. Amid the previous events, the pair is still in an uptrend; for that we expect the EUR/USD pair to climb from 1.2209 to 1.2335 today. At the same time, in case a reversal takes place and the EUR/USD pair breaks through the support level of 1.2209, a further decline to 1.2106 can occur, which would indicate a bearish market next week.
